Globalization, Worker Insecurity, and Policy Approaches

[Excerpt] Today\u27s global economy, or what many call globalization, has a growing impact on the economic futures of American companies, workers, and families. Increasing integration with the world economy makes the U.S. and other economies more productive. For most Americans, this has translated into absolute increases in living standards and real disposable incomes. However, while the U.S. economy as a whole benefits from globalization, it is not always a win-win situation for all Americans. Rising trade with low-wage developing countries not only increases concerns of job loss, but it also leads U.S. workers to fear that employers will lower their wages and benefits in order to compete. Globalization facilitated by the information technology revolution expands international trade in a wider range of services, but also subjects an increasing number of U.S. white collar jobs to international competition. Also, globalization may benefit some groups more than others, leading some to wonder whether the global economy is structured to help the few or the many. The current wave of globalization is supported by three broad trends. The first is technology, which has sharply reduced the cost of communication and transportation that previously divided markets. The second is a dramatic increase in the world supply of labor engaged in international trade. The third is government policies that have reduced barriers to trade and investment. Some recent research examines whether these trends are creating new vulnerabilities for workers. Some of the vulnerabilities for workers are underlined by changing employment patterns caused by increased foreign competition, a declining wage share of national income, and rising earnings inequality. These trends, in turn, have become a source of economic insecurity for many Americans and may be weakening public support for U.S. engagement with the world economy. To bolster public support for an open world economy, the conventional wisdom is that the legitimate concerns of those who are losing in the contemporary economic environment need to be addressed. To what extent the losers should be compensated and how is a matter of considerable congressional and public debate. Because the relationship between globalization and worker insecurity is complicated and uncertain, a number of different approaches may be considered if the goal is to bolster public support for U.S. trade policies, globalization, and an open world economy. Policies involving adjustment assistance, education, tax, and trade are most commonly proposed. There appears to be a range of views on the merits of each of these policy approaches and the extent to which they can be designed and implemented in a way that would reduce worker insecurity without undermining the benefits of globalization. In the view of many economists, policies that inhibit the dynamism of labor and capital markets or erect barriers to international trade and investment would not be helpful because technology and trade are critical sources of overall economic growth and increases in the U.S. living standard. This report will be updated should events warrant

China\u27s Industrial Policy and its Impact on U.S. Companies, Workers and the American Economy

[Excerpt] China’s industrial policies have had a profound effect on the U.S. economy. The trade deficit with China in goods reached $266 billion in 2008, resulting in slower U.S. economic growth and fewer jobs here than if the trade relationship were more balanced between imports and exports. Witnesses differed as to the degree that the overall U.S. trade deficit would decline if the trading relationship between the two countries were brought into balance. But it is significant that the U.S. deficit with China represented 33 percent of the total U.S. trade deficit with the world and 42.6 percent of the deficit with non-oil exporting countries. In addition, it is not just the size of the deficit that policymakers should examine, but the changing nature of its composition. The United States in 2008 ran a record$72.7 billion trade deficit with China in advanced technology products

Capital goods imports, the real exchange rate, and the current account

Conventional aggregate models of open economies typically rule out trade in capital goods. But capital goods account for a major share of the world trade. In 1990, they represented more than 40 percent of U.S. merchandise exports and more than 30 percent of its imports. In the same year, capital goods imports represented an average of roughly 30 of total imports for 82 industrial and developing countries, and almost 9 percent of their GDP. This report shows that the presence of imported capital goods greatly changes the short- and long-run effects of macoreconomic policies and external shocks on key macroeconomic variables. Using a rational-expectations aggregate model with intertemporally optimizing agents and with trade in both consumption and capital goods, it finds that the long-run equilibrium of the economy displays a negative relationship between the real exchange rate and real output - that is, a real appreciation is associated with an increase in long-run output and the capital stock. With investment subject to adjustment costs, the response to unanticipated permanent disturbances involves a changing real exchange rate and a non-zero current account. The author analyzes the macroeconomic consequences of changes infiscal policy and of transfers of wealth from abroad. He show that both have well-defined long-run effects on the capital stock and real output. Fiscal expansion, in particular, may have a long-run crowding-in effect on investment. By constrast, the impact of disturbances on the current account is ambiguous. The author shows that it depends critically on the degree of intertemporal substitutability in both consumption and investment - with the latter measured by the magnitude of investment adjustment costs.Economic Theory&Research,Environmental Economics&Policies,Macroeconomic Management,International Terrorism&Counterterrorism,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT

Marketing plan design proposal of fruit pulp from Colombia to the us market for the company Fast Fruit Ltda. Pulpa de fruta

This paper explores the feasibility of internationalizing a product from a Colombian company to the U.S. market. The study is developed through the documentary research which provides a general understanding of the current situation on the food market at national and international level. In recent years, the number of exports has gradually increased due to commercial agreements between countries, supporting the internal economy to grow and changing the country's image in the world where Colombia is well-recognized because of its high quality agricultural products. At the same time, it is analyzed two internationalization methods whereby the enterprise could guide to start this process in a foreign market taking into account marketing strategies in order to implement and develop it successfully.Abstract Table of contents Introduction Objectives General Objective Specific Objectives: General statement Question Background Referential Framework United States Market Analysis Australia Market Analysis Canada Market Analysis United Kingdom Market Analysis Theoretical Framework Internationalization Marketing proposal Business Plan Plan Proposal International SWOT Analysis The main product imported by U.S Similar products: Distribution channels Economic Analysis GDP Growth rate Consumption rates Per capita income Natural resources Workforce Inflation Product demand Prices (similar products) Alliances (economic-trade) Trade policies Colombian investments in U.S.A. Marketing Marketing strategies About the product composition The advertising Customer Satisfaction Creation of value Funds and investments Relationship Marketing Advantages and Disadvantages The product itself Alliances Commercialization Projections Conclusions ReferencesPregradoProfesional en Lenguas ModernasLenguas Moderna

Globalization, Worker Insecurity, and Policy Approaches

[Excerpt] Today’s global economy, or what many call globalization, has a growing impact on the economic futures of American companies, workers, and families. Increasing integration with the world economy makes the U.S. and other economies more productive. For most Americans, this has translated into absolute increases in living standards and real disposable incomes. However, while the U.S. economy as a whole benefits from globalization, it is not always a win-win situation for all Americans. Rising trade with low-wage developing countries not only increases concerns of job loss, but it also leads U.S. workers to fear that employers will lower their wages and benefits in order to compete. Globalization facilitated by the information technology revolution expands international trade in a wider range of services, but also subjects an increasing number of U.S. white collar jobs to outsourcing and international competition. Also, globalization may benefit some groups more than others, leading some to wonder whether the global economy is structured to help the few or the many. The current wave of globalization is supported by three broad trends. The first is technology, which has sharply reduced the cost of communication and transportation that previously divided markets. The second is a dramatic increase in the world supply of labor engaged in international trade. The third is government policies that have reduced barriers to trade and investment. Whether these trends are creating new vulnerabilities for workers is the subject of increasing research and debate

The WTO: A Train Wreck in Progress?

This article argues that the WTO entrenches an asymmetrical, non-reciprocal trading system that benefits multi-national corporations especially, at the expense of industrial workers, farmers, and a wide range of business enterprises. It argues that the WTO doesn\u27t deserve to survive in its present, unbalanced, and unsustainable form, and that it is doubtful that its voting regime, accumulated asymmetries, and overall rigidity can be overhauled. The author posits that bilateral and regional trade bargaining will become increasingly important and that world market forces are likely to bypass, and perhaps overwhelm, the WTO

TRADE AND MACROECONOMIC POLICY: WHAT DOES IT MEAN FOR FARMERS AND LENDERS?

International Relations/Trade,

How Economies Grow: The CED Perspective on Raising the Long-Term Standard of Living

This report ties together CED's previous six decades of work on various policies that concern the nation's prospects for economic growth to outline how the economy grows and, more generally, what must be done to improve its long-term prospects